July 22, 2008

Foreign inflation

The recent inflation rate in our country has been receiving much attention because it has been rising. Today's annual inflation rate is around 4 percent, compared to only 1 percent a few years ago. But are we alone in our battle against inflation or are other countries also having similar issues? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, if there is some good news here, it is that we aren't alone. Other countries are also experiencing rising inflation. Let me give you a few numbers. Europe - most of Western Europe - is experiencing inflation about where we are, a little shy of 4 percent. The latest reading for Europe is about 3.7 percent. However, you go to China, they're experiencing inflation of over 8 percent per year; India, 7 percent; Russia, 15 percent a year; and Venezuela, 31 percent annual inflation rate. Now, at the other end of the spectrum, there is one country that sticks out right now, having a very low inflation rate. That is Japan. Their current inflation rate is around 1 percent. In general, what we're finding around the world is countries that are growing very fast - and those would include countries like China, India, Russia, Venezuela - they are the countries that are experiencing the highest inflation rates."